Overview of New Hampshire Taxes
New Hampshire is known as a low-tax state. But while the state has no personal income tax and no sales tax, it has the third highest property tax rates of any U.S. state, with an average effective rate of 2.05%.
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To calculate the exact amount of property tax you will owe requires your property's assessed value and the property tax rates based on your property's address. Please note that we can only estimate your property tax based on median property taxes in your area. There are typically multiple rates in a given area, because your state, county, local schools and emergency responders each receive funding partly through these taxes. In our calculator, we take your home value and multiply that by your county's effective property tax rate. This is equal to the median property tax paid as a percentage of the median home value in your county.
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Jennifer Mansfield Tax
Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.
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New Hampshire Property Taxes
New Hampshire is known as a low-tax state, but homeowners in the Granite State might disagree with that characterization. While the state has no personal income tax and no sales tax, it has the third highest property tax rates of any U.S. state, with an average effective rate of 2.05%.
Likewise, in dollar terms New Hampshire’s property taxes also rank among the top three: the median property tax paid by homeowners in New Hampshire is $4,927. That means about half of all New Hampshire home owners pay more than $5,000 annually in property taxes.
How New Hampshire Property Taxes Work
New Hampshire has both state and local property taxes. In fact, any given property can pay up to four different property taxes: a town tax, a local school tax, the state education tax and a county tax.
To determine the amount on which to base taxes, local assessors conduct annual appraisals. The goal of these appraisals is to calculate the full market value of the property. In general, assessors do not visit properties, but instead use mass appraisal techniques to determine property values based on market and property data.
That is an inherently imperfect process. Homeowners who disagree with their home’s valuation can file an abatement request. That will general lead to a review of valuation, and a possible refund of taxes paid.
Likewise, the state of New Hampshire recognizes that different areas have slightly different appraisal procedures. It annually “equalizes” values between counties, using market data to apply a ratio that balances values between all areas. That ratio is used to determine the state education tax rate, which varies from city to city, as described below.
New Hampshire Property Tax Rates
Tax rates in New Hampshire are determined by a number of local government authorities, as well as by the state of New Hampshire. Towns, school districts and counties all set their own rates based on budgetary needs. Rates are expressed in mill rates. One mill is equal to $1 of tax for every $1,000 in assessed property value.
The state of New Hampshire collects a state education tax. The rate is around 2.5 mills, but varies from county to county depending on the equalization ratio described above.
When comparing rates between counties, it is useful to look at effective property tax rates and not mill rates. Effective property tax rates are property taxes paid as a percentage of home value. The table below shows the average effective property tax rate for every New Hampshire county.
|County||Median Home Value||Median Annual Property Tax Payment||Average Effective Property Tax Rate|
If you’re eager to learn more about what owning property in New Hampshire entails, head on over to our mortgage guide. There you will find information about mortgage rates and details about getting a mortgage in the Granite State.
Hillsborough County is New Hampshire’s most populous, with over 400,000 residents. Its largest city is Manchester, also the largest city in the state. The average effective property tax rate in Hillsborough County is 2.14%.
In Manchester, the total tax rate in 2014 was 23.5 mills, or $23.50 in taxes for every $1,000 in assessed value. The largest source of that tax was the town tax rate, 11.76 mills in Manchester. The local school district rate was 8.09 mills.
Homeowners in southeast New Hampshire’s Rockingham County pay the highest annual property taxes of anywhere in the state. The median annual property tax payment in Rockingham County is $5,774. That’s about $800 more than the state average, and over $3,500 more than the national average.
Located in central New Hampshire, north of Hillsborough County, Merrimack County has the 3rd highest property tax rates of the states ten counties. The average effective property tax rate in Merrimack County is 2.20%.
The largest city in Merrimack County is Concord. The total mill rate in Concord for 2014 was 26.81 mills. Of that, over half went to schools. 11.60 mills was collected locally for schools, along with the state education rate of 2.60 in Concord.
Strafford County is located in eastern New Hampshire, along the border with Maine. In contains the cities of Dover and Rochester. The average effective property tax rate in Strafford County is 2.19%. At that rate, the property taxes on a home worth $200,000 would be $4,380 annually.
Thinking about buying a home in the White Mountains? Central New Hampshire’s Grafton County is a good choice, and offers residents (relatively) low property tax rates. The average effective property tax rate in Grafton County is 1.86%, 3rd lowest in the state.
Located in southwest New Hampshire, along the borders with Vermont and Massachusetts, Cheshire County has the highest property tax rates of any county in New Hampshire. The average effective property tax rate in Cheshire County is 2.43%. That not only ranks 1st in New Hampshire but among the top 50 county averages of the more than 3,100 counties in the U.S.
Belknap County, which runs along the western shores of Lake Winnepesaukee, has among the lowest property tax rates in New Hampshire. In Laconia, the largest city in the county, the 2014 mill rate was 22.40 mills. In smaller towns, however, the rate is far lower. In Meredith, for example, the total rate was just 14.83 mills.
If you want to move to New Hampshire but don’t want to pay high property taxes, Carroll County may be your best bet. The average effective property tax rate in the county is 1.23%, far below the state average of 2.05%. Likewise, the median annual property tax payment in Carroll County is $2,789. That means the typical Carroll County homeowner pays over $2,000 less than the typical resident in the rest of the state!
Located in western New Hampshire, Sullivan County has among the highest property tax rates in the state. The county’s average effective property tax rate is 2.42%, second highest in the state. In Claremont, which is the largest city in the county, the total rate for 2014 was 41.33 mills, nearly double that in many other New Hampshire cities.
The median annual property tax payment in northern New Hampshire’s Coos County is $2,817, about $2,000 less than the state average. That is largely a result of the county’s relatively low home values. According to the U.S. Census Bureau, the median home value in Coos County is $128,500.
Property Tax: Which Counties are Getting the Best Bang for Their Buck
SmartAsset’s interactive map highlights the places across the country where property tax dollars are being spent most effectively. Zoom between states and the national map to see the counties getting the biggest bang for their property tax buck.
Our study aims to find the places in the United States where people are getting the most for their property tax dollars. To do this we looked at school rankings, crime rates and property taxes for every county.
As a way to measure the quality of schools, we calculated the average math and reading/language arts proficiencies for all the school districts in the country. Within each state, these schools were then ranked between 1 and 10 (with 10 being the best) based on those average scores.
For each county, we calculated the violent and property crimes per 100,000 residents.
Using the school and crime numbers, we calculated a community score. This is the ratio of the school rank to the combined crime rate per 100,000 residents.
We used the number of households, median home value and average property tax rate to calculate a per capita property tax collected for each county.
Finally, we calculated a tax value by creating a ratio of the community score to the per capita property tax paid. This shows us the counties in the country where people are getting the most bang for their buck, or where their property tax dollars are going the furthest.
Sources: US Census Bureau 2016 American Community Survey, Department of Education, Federal Bureau of Investigation, State Police or Justice Department websites